(PRWEB) July 17, 2012
Today.com reports that most Americans don’t have enough money saved for a rainy day ---- or even a cloudy one. A new survey from Bankrate.com finds that 28 percent of Americans haven’t saved any money at all to cover their bills in case of a job loss or new disaster.
Only 25 percent of people had six months of savings – the usual amount financial experts say you should have stocked away for an emergency. And six months might not even be enough given how long its taken people to find a job these days. The median duration of unemployment was 20 weeks in May, or about five months, according to the Bureau of Labor Statistics. For older Americans it can be much longer.
The Labor Department just last week announced that new claims for unemployment aid rose unexpectedly in the latest week, signaling that the labor market remained on the defensive and the recovery was stumbling along. The recession and the weak recovery have been a wake-up call for many Americans, sparking an increase in savings and a decline in debt. But recently there have been signs that people are taking on debt again and relying more on their credit cards.
The multiple problem of the slow recovery, the reliance on credit cards and the lack of an emergency fund of any duration place a further burden on homeowners that have been constantly juggling their budget or are falling behind on other obligations in the desperate attempt to remain current with their mortgage. Lance Denha, Esq. of the Law Offices of Lance Denha noted that “Unfortunately, the slightest change in their circumstance such as a major home repair, automobile problems, the permanent or even temporarily loss of income can drastically alter one’s situation and payment capabilities.”
It’s not clear whether American’s taking on additional debt is by choice or necessity, although Bankrate.com research did show that about one-third of those surveyed were less comfortable with their savings than they were a year ago. Taken together with those who hadn’t saved at all, 49 percent of people couldn’t go three months without a paycheck. “This is a tenuous position for a struggling homeowner who is current with their mortgage, but lacks a safety net in the event of a loss of income or unexpected expenses. In many cases, homeowners have exhausted what savings they did have in an effort to stay current.” Mr. Denha said. “It’s more prudent to prepare now for those potential financial problems before they become a reality.”
It is highly advisable to seek legal expertise to determine the best course of action in order to gain an understanding of the particular direction best suited for the client. Falling behind on mortgage payments without action or simply walking away, are solutions that carry severe consequences going forward. All individuals are afforded the same legal rights whether current or behind in payments. It is vital to ensure and protect these legal rights for the homeowner. The Law Office of Lance Denha P.A. is a multi-state law firm and helps legally defend and preserve the rights of those struggling homeowners now current, or those individuals who are being wrongfully foreclosed. For further information or assistance, please call at 954-840-0770.